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Electric vehicles are a leading candidate in the clean energy market. This paper aims to analyse the feasibility of the deployment of electric buses (EB) based on the existing bus routes in Brunei, by the use of life cycle cost analysis and the analysis of the parameters that influence the overall life cycle cost. The findings from the study revealed that EB are significantly more expensive than diesel buses (DB), with their acquisition and maintenance costs contributing substantially to their overall life cycle cost. In order to promote EB deployment, the government needs to look simultaneously into providing subsidies for EB and imposing taxes on DB, the provision of charging infrastructure, and ensuring maintenance capability, as well as increasing the current subsidised diesel price. It was also shown that increasing the cost of diesel to the average US diesel price of USD$3.101/L, an initial subsidy of USD$67,586 towards the purchase of EB, and a tax of USD$67,586 for the purchase of DB would allow EB to compete in the market, with the amount of tax and subsidy being gradually reducible over time, as EB and battery technology becomes more mature. From an environmental perspective, the emissions from EB come out higher than the emissions from DB. The efficiency of electric power generation needs to be enhanced, and renewable energy sources and the adoption of carbon capture technology need to be explored in order to exploit the full benefit of EB and ensure more environmentally sustainable bus operation.